Concepcion’s family founded RFM over six decades ago, building a portfolio that includes market leaders like Royal and White King pastas, Sunkist juice, and Selecta milk and ice cream, the latter produced through a joint venture with global consumer giant Unilever.
RFM is also one of the resilient names on the stock exchange, with its stock price higher by roughly 30 percent since the start of 2024. In comparison, the Philippine benchmark index, or PSEi, has declined by about 0.7 percent.
Despite the stock market’s volatility, Concepcion told InsiderPH that RFM remains a dependable choice for investors, which is why he has been purchasing shares.
Better than a savings account
“We’re doing cash dividends, basically it’s close to a [yield] of 6-9 percent, it plays within that range, so versus putting money in the bank you’re better off investing in companies like us,” he said in an interview.
“I’ve always been bullish about RFM’s eventual long-term performance,” he added, when asked about his stock purchases in RFM.
Consistent dividends
“We want the public to start investing in us now,” he said.
“If they’re able to see a track record of consistent dividend declaration, which is happening and has been happening for the last two years now, then the confidence will be higher for local [investors] to invest in RFM,” he added.
In 2024, the company declared P1.3 billion in cash dividends. This is up from P850 million in 2023.
Growth outlook
Concepcion stated that the company’s strong performance this year is expected to deliver profits of around P1.3 billion to P1.5 billion, with projected growth of 8 to 10 percent in 2025.
In 2023, net income rose by 18 percent to about P1.27 billion.
Strong cash position
“This year is a good year, and I believe next year will be an even better year,” he said. “We’re also debt free and have a lot of cash.”
Net cash generated from operations doubled to P1.3 billion during the first nine months of 2024, its latest financial statement showed. Total cash and equivalents reached P1.87 billion during the same period.
Economy to grow despite risks
Concepcion said inflation and geopolitical risks remain key challenges but expects the Philippines to continue growing and weather these issues successfully.
“If you look at the Philippine economy, I think there’s a lot of potential still. Consumer spending is key to economic growth and, of course, job employment. I see that happening under this administration,” he said.
RFM taps influencers for marketing
Concepcion said the company is adjusting its approach to managing and marketing products.
This era of content creators is also a welcome shift for the businessman.
“Online marketing has shifted to influencers; we don’t need to get any more of these popular celebrities,” he said.
“You now are basically playing either in TikTok, Instagram, Facebook, so our marketing costs have come down tremendously,” he added.
The bottom line
To provide his long-term belief in RFM, Concepcion is letting his wallet do the talking.
His stock purchases have increased his holdings to about 802 million shares, currently worth about P3.1 billion.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
